Now Indians have become smarter and more aware about investment than before. They are now understanding better where to invest and where they will get security and returns as compared to traditional investments. This is the reason why the number of people investing in mutual funds in the country is increasing rapidly. People are turning to mutual funds in large numbers due to the higher returns they give compared to FDs and other traditional investment schemes. Most interest in these is being seen among those investors who want to avoid investing directly in the stock market. So let us now find out how much return a fund can give on a SIP of Rs 3,000. Let us understand the calculation taking HDFC Balanced Advantage Fund as an example.
This much fund made on SIP of Rs 3 thousand
HDFC Balanced Advantage Fund was launched on 1 February 1994. Since then, this fund has given an average return of 18.66 percent annually. If an investor had started a monthly SIP (Systematic Investment Plan) of Rs 3000 in this fund 30 years ago, today his fund would have been worth around Rs 5 crore. If we look at the calculation of this amount, the invested capital would have been only Rs 10.80 lakh, but on the basis of 18.66 percent annual return, this amount would have reached Rs 4.93 crore in the form of interest.
What do experts say?
HDFC Balanced Advantage Fund is considered by experts as a high-risk investment, hence it is advised to invest for at least 3 years or more. However, investors can start SIP in this fund with a minimum amount of just Rs 100, making it accessible to every level of investor.
The performance of this fund has been excellent even in the last one year. It has given a return of 33.79 percent in the last one year, while in the last three years this rate has been 22.63 percent per annum. In an average of five years, this fund has provided annual returns of 21.62 percent.
